Relationships Between Prices of Oils and Oilseeds in India

The objective of this paper is to investigate the shortrun interrelationships between prices of oils and oilseeds in India by applying Koyck's (1954) distributed lag model. Since most edible and even non-edible oils can be substituted one for another in many uses, we postulate dependence of each oil price on prices of all others. Depending upon the significance of estimated relationships we shall differentiate between unidirectional and bidirectional causality.